A financial performance analysis of bundura nickel ltd by mr lenon watambwa (2019) abstract


Share prices analysis and earnings pershare: The



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SSRN-id3521211
Share prices analysis and earnings pershare: The stock of Bindura Nickel Corporation Limited (BIND) is currently trading at 0.1050 USD per share on the Zimbabwe Stock Exchange. BIND began the year with a share price of 0.0945 USD and has since gained 11.11% on that price valuation, ranking it 39th on the ZSE in terms of year-to-date performance. The stock movement can be fully explained by the diagram below Fig 1.2 Shareholders will be pleasantly optimistic about BIND knowing that the stock has increased not only due to inflationary causes but by other factors also. Earnings per Share The Price Earnings Ratio (PE Ratio) is the relationship between a companyโ€™s stock price and earnings per share (EPS). It is a popular ratio that gives investors abetter sense of the value of the company. The PE ratio shows the expectations of the market and is the price you must pay per unit of current earnings. Earnings per share is calculated as
๐ธ๐‘ƒ๐‘† =
๐‘๐‘’๐‘ก ๐ผ๐‘›๐‘๐‘œ๐‘š๐‘’
๐ด๐‘ฃ๐‘’๐‘Ÿ๐‘Ž๐‘”๐‘’ ๐‘œ๐‘ข๐‘ก๐‘ ๐‘ก๐‘Ž๐‘›๐‘‘๐‘–๐‘›๐‘” ๐‘๐‘œ๐‘š๐‘š๐‘œ๐‘› ๐‘ โ„Ž๐‘Ž๐‘Ÿ๐‘’๐‘ 
Eps was calculated using data in the table below Electronic copy available at https://ssrn.com/abstract=3521211


23 Year
2016 2017 2018 2019 Net income
42 268 499 45 122 963 53 555 405 54 005 118 Shares
1 239 656 591 1 239 656 591 1 239 656 591 1 239 656 591
Eps
649 070 609 961 5 838 520 13 467 811
Source zimbabwe stock exchange

table 1.4

Failure Prediction:
We used the Z score model in an effort to predict the possibility of failing in the next 2 years. The analysis is as shown below.
Z-Score
=
1.2(
๐–๐จ๐ซ๐ค๐ข๐ง๐  ๐‚๐š๐ฉ๐ข๐ญ๐š๐ฅ
๐‘ป๐’๐’•๐’‚๐’ ๐’‚๐’”๐’”๐’†๐’•๐’”
)
+
1.4(
๐‘น๐’†๐’•๐’‚๐’Š๐’๐’†๐’… ๐‘ฌ๐’‚๐’“๐’๐’Š๐’๐’ˆ๐’”
๐‘ป๐’๐’•๐’‚๐’ ๐’‚๐’”๐’”๐’†๐’•๐’”
)
+
3.3(
๐„๐๐ˆ๐“
๐‘ป๐’๐’•๐’‚๐’ ๐’‚๐’”๐’”๐’†๐’•๐’”
)
+
0.6(
๐Œ๐š๐ซ๐ค๐ž๐ญ ๐ฏ๐š๐ฅ๐ฎ๐ž ๐จ๐Ÿ ๐„๐ช๐ฎ๐ข๐ญ๐ฒ
๐‘ฉ๐’๐’๐’Œ ๐’—๐’‚๐’–๐’† ๐’๐’‡ ๐’•๐’๐’•๐’‚๐’ ๐’๐’Š๐’‚๐’ƒ๐’Š๐’๐’Š๐’•๐’Š๐’†๐’”
) + 1.0(
๐’๐š๐ฅ๐ž๐ฌ
๐‘ป๐’๐’•๐’‚๐’ ๐’‚๐’”๐’”๐’†๐’•๐’”
)
=
1.2 (
โˆ’28639118 96263298
) + 1.4 (
7936422 96263298
) + 3.3 (
1416608 96263298
) + 0.6 (
40240408 5602890
) + 1.0(
45122963 96263298
)

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